The Three Trends Catapulting Connected TV into the Performance Marketing Arena
Why the pandemic isn’t the only thing making advertisers reshuffle their dollars to CTV.
We recently explored the necessity for brands to include Connected TV as an ‘always on’ part of their digital strategy. Yet, amid the hype, many advertisers still perceive Connected TV as another branding channel, when in fact it’s a performance channel that represents a lot of opportunity for brands. Advertisers who’ve caught on are the ones set to succeed, and this year we’re exciting many more to join them. We’ll be exploring this topic in our upcoming webinar hosted by leading market research provider, eMarketer. Led by SteelHouse’s Director of Customer Success, Alexa Tierney, you’ll learn everything you need to know about using Connected TV to drive incremental lift for your business, and ways to weave it into your digital strategy. Click the image below to register!
A Way to View Performance and Branding Under a Single Lens
There is a wide misunderstanding in the industry that Connected TV advertising is the same as the television of yesteryear, but it functions as a digital channel served on television. CTV advertising has the ability to measure, track and tie performance goals with KPIs with the added value of branding and engagement that ultimately lead to more sales volume, higher average order value, customer retention and brand loyalty. Think of CTV as an ad channel that carries the brand impact of TV ads, but with the performance of a channel like search or social.
For example, in the case of Connected TV advertising platforms like SteelHouse Performance TV, advertisers can target a wide range of audience segments directly within the platform, upload their commercial and then drive website visits, ROAS or conversions (and track attribution) all on a single platform. These CTV ads are served only on television screens, which continues to be the most effective brand awareness channel out there to create, build and grow brands – and keep them top of mind longer than a sponsored post or a search result ever will. Let’s take a look at the trends that have helped accelerate Connected TV’s popularity as a performance marketing tool.
The Data Privacy Dilemma
The data privacy narrative has been put under the spotlight, as users grow more aware of how their daily actions are being tracked, monitored and monetized. These concerns have brands and advertisers rethinking their approach to channels, targeting and measuring performance. Advertisers are already seeing the warning signs up ahead as the tech industry cracks down on third-party cookies and mobile apps.
Connected TV appeals to many advertisers seeking alternatives to help mitigate these issues, since it is cookieless and not beholden to ever-increasing mobile app privacy restrictions. It serves ads via IP address, sidestepping those issues, and also captures all other household devices, such as laptop, mobile phone, desktop and tablet. This means advertisers can reach their audience across multiple devices beyond Connected TV, all from a single platform. We’ve seen a migration and budgets shift to Connected TV, with our own client base growing 67% YoY on Performance TV.
Searching for Something Beyond Search (Advertising)
Albert Einstein wisely said, “The definition of insanity is doing the same thing over and over again, but expecting different results.” As the law of diminishing returns would have it, advertisers have reached the ceiling through classic performance channels. Since they have exhausted their efforts on search and social, they are now seeking new ways to effectively spend their budget. This is why we recommend advertisers complement their digital marketing activities with Connected TV, as it can effectively broaden an advertisers audience pool. They can even retarget their first-party users on Connected TV to drive users back to their site and convert. This is always tied back to performance, since our attribution model only takes credit upon certain criteria being met (namely viewing a CTV ad to completion, followed by a website visit and purchase all within a set time frame defined by the advertiser).
Traditional digital advertising channels often trade off performance for branding, even though they are touted as performance marketing channels. Connected TV, on the other hand, achieves both – the unique prestige of a television commercial viewed by a captive/passive audience, combined with the functionality of a digital advertising platform that can be as easily targeted, launched and measured as the more well-known ones.
Looking into the Crystal Ball…
Nowadays, advertisers want more for less – they want to be assured that their current activities will have a ripple effect into the future and not just for the length of their campaign. Great campaign performance metrics are one thing, but real value is found when advertisers can make an impact that can be felt a year from now.
For tracking campaign performance now, our analytics tool provides a measure of your campaign performance across different dimensions, which can be fully customized across 900+ metrics. Additionally, our integration with Google Analytics also provides an overview of how your Connected TV campaigns are performing alongside your other digital marketing channels, which gives a better read of the overall health of your digital ad strategy beyond Connected TV. We also encourage advertisers to perform A/B testing on the platform to see which type of messaging, color, format etc is resonating best with your audience.
For a lasting impact, CTV has proven to have a pretty strong YoY effect. Advertisers who ran campaigns in both Q4 2019 and Q4 2020 saw impressive improvements to key campaign performance metrics, including revenue (up a whopping 208%), site visits, and conversions. This is a clear testament to the mindset shift to Connected TV playing a lead role in advertiser’s digital strategy beyond a single campaign.